Monday, June 8, 2015

JP Morgan as Caught on Elliot Wave

Prices are tending high in a non-overlapping
impulsive trend. The recent rally which I labeled as the third wave of the
impulsive move is ending in an expanding diagonal formation.

In expanding
diagonal, wave 5 is greater than wave 3 which is greater that wave 1; wave 4 is
greater than wave 2 and the connecting trendlines, upper and lower, show that
prices should continue the rally to $70 where a minor dip to $65 regionis very likely before a further rally to
probably $72.

Alternatively, price could be forming a
double zigzag formation which could have a reversal bearish impact. Price could
fall below $58 and deeper in what could be an impulsive larger wave bearish
move.

In the two wave count, price is expected to
fall after, perhaps, further rally.

The extent of the fall will determine which
count is valid. A minor dip to $65 follow by further rally will validate the
first count while a break below $65 could validate the second count.